The post-war years have seen significant diversification in New Zealand's markets for merchandise exports. Australia, the United States of America, Japan and the United Kingdom remain our four largest individual markets, but their combined contribution has fallen from more than 70 percent in the 1950’s to 54.7 percent in the year ended June 2000.

The starkest change over this time is the declining contribution of the United Kingdom, which in 1955 took 65.3 percent of New Zealand's exports. By the year ended June 1973, during which Britain formally entered the European Economic Community, this had fallen to 26.8 percent. By the year ended June 1990 its share had fallen to 7.2 percent and in the year ended June 2000 its share was 6.2 percent. The United Kingdom has been New Zealand's fourth largest individual market since 1984.

Australia was New Zealand's single largest market throughout the 1990’s. The ANZCERTA (Closer Economic Relations) agreement, which was signed in 1983 and reviewed in 1988, provided for the reduction and eventual removal of trade barriers between the two countries.

The United States of America resumed its position as New Zealand's second largest individual export market in 1999. It had held that position for most of the post-war period until the mid 1970’s, when both Australia and Japan's contributions surpassed it.

Main Trading Partners: Contribution to Total ExportsYear ended June

Export markets year ended June 2000

Australia at 21.2 percent of exports is our most important single-country market, followed by the United States of America at 14.4 percent. Asia at 34.9 percent was the main geographic region for New Zealand exports and includes several of the top ten single-country markets (Japan, the Republic of Korea, the People's Republic of China, Hong Kong (SAR), Taiwan and Malaysia). Europe also remains an important market for New Zealand's exports, accounting for 17.5 percent of New Zealand exports.

Exports to Asia, Europe, Australia and the United States of America accounted for 87.9 percent of New Zealand's exports in the June 2000 year. Their contribution has steadily increased since 1990, when they accounted for 82.7 percent of total exports.

Destination of main commodities - year ended June 2000

Our major commodities exported were:

Milk powder, butter and cheese valued at $3,975 million. Japan was the largest single destination, followed by the United States of America, Malaysia, the United Kingdom and Australia.

Meat and edible offal valued at $3,375 million. The largest individual markets were the United States of America ($1,080 million), the United Kingdom and Germany.

Logs, wood and wood articles valued at $2,016 million. The main markets were Japan, Australia, Republic of Korea, the United States of America, and Taiwan.Together these five markets accounted for 86.4 percent of exports of these products.

Fish, crustaceans and molluscs valued at $1,218 million, for which the main markets were Japan, the United States of America, Australia and Hong Kong (SAR).

Mechanical machinery valued at $1,124 million, just over half of which went to Australia ($571 million).The next largest market was the United States of America.

Aluminium and articles thereof valued at $1,116 million, predominantly destined for Japan ($642 million), Republic of Korea, Australia, Taiwan and the United States of America.

Fruit and nuts valued at $975 million, of which more than half went to Europe.

Electrical machinery valued at $830 million, for which the main destinations were Australia ($322 million), the United States of America, the United Kingdom and Hong Kong (SAR).

Casein and caseinates valued at $803 million, with more than half destined for the United States of America. Other markets included Japan, Germany and Italy.

Wool valued at $801 million for which the main markets were People's Republic of China ($125 million), the United Kingdom, Italy and India.

Main Commodities: Contribution to Total ExportsYear ended June

Commodity values from October 1999 exclude confidential items. Main commodities affected are mineral fuels; raw hides, skins and leather; textile and textile articles; iron and steel and articles; paper and paperboard and articles.

Australia

In the year ended June 2000, Australia accounted for 21.2 percent ($5,502 million) of New Zealand's merchandise exports. Australia is our largest market for several commodities including mechanical machinery; electrical machinery and textiles and textile articles. Other significant commodities exported to Australia in the June 2000 year were logs, wood and wood articles; mineral fuels and paper and paperboard and articles.

Main Commodities Exported to AustraliaYear ended June

United States of America

The United States of America accounted for 14.4 percent ($3,737 million) of New Zealand's merchandise exports for the year ended June 2000. Major commodities exported to the United States of America are primary and agricultural-based. The United States of America is our largest individual market for meat and edible offal and casein and caseinates. Other main commodities exported include logs, wood and wood articles and milk powder, butter and cheese.

Main Commodities Exported to the United States of AmericaYear ended June

Asia

Asia at $9,069 million, 34.9 percent of total exports was the main geographic region for New Zealand's exports in the year ended June 2000 and includes several of the top ten single-country markets. The largest of these was Japan which accounted for 37.2 percent of total exports to Asia, this compared to 53.2 percent in the June year 1990. Other important markets within Asia include the Republic of Korea, the People's Republic of China, Hong Kong (SAR) and Taiwan.

The proportion of New Zealand's exports destined for Asian countries generally increased between the 1990 and 1996 June years, with exceptions being to Japan and the Republic of Korea, where they fell in the year to June 1996. The value of total exports to Asian countries fell 1.7 percent in 1997, 3.6 percent in 1998 and 2.1 percent in 1999 and then recovered in the June 2000 year by 21.7 percent.

The decline in exports to Asia from 1997 to 1999 was partly attributable to the Asian economic downturn, which became evident in Southeast Asia in early to mid 1997 and spread to other countries in Northeast and Southeast Asia, particularly the Republic of Korea and Indonesia. Asian sharemarkets and currencies were adversely affected, causing a downturn that flowed on to depress economic growth, trade and tourism in other countries.

Exports to Asia - Share by CountryYear ended June

Japan was New Zealand's third largest export destination in the June 2000 year, accounting for $3,370 million of New Zealand's merchandise exports. Japan is our largest market for fish, crustaceans and molluscs ($291 million). Other commodities exported to Japan were aluminium and articles thereof; logs, wood and wood articles and milk powder, butter and cheese.

Main Commodities Exported to JapanYear ended June

Europe

Europe was the second largest geographic region for New Zealand's exports at $4,559 million, accounting for 17.5 percent of total exports in the year ended June 2000. Included in Europe is the United Kingdom which accounts for 35.3 percent of New Zealand's exports to Europe. Other important countries within Europe include Germany, Belgium, Italy and France. These five countries accounted for 77.3 percent of New Zealand's exports to Europe.

Exports to Europe - Share by CountryYear ended June

The United Kingdom was our fourth largest export destination in the June 2000 year, accounting for $1,609 million of New Zealand's merchandise exports. The United Kingdom has historically been one of New Zealand's largest trading partners. It was our largest trading partner until the late 1970's when Australia, Japan and the United States of America became dominant.

The main commodities exported to the United Kingdom were meat and edible offal; milk powder, butter and cheese; aircraft and parts; fruit and nuts and wool.